Yeah that's really unfortunate. The GOP in states like this really ought to get serious about proposing their own plans if they aren't going to accept funding. They don't even have to be Obama-Care-like plans. I'd love to see a state or two implement a couple of the solutions promoted by right wing think tanks (E.g. Tort reform) just to see how they work in practice.
If tort reform were going to magically reduce healthcare costs so everyone could afford insurance, Texas wouldn't have a 25% uninsured rate despite one of the most anti-plaintiff legal environments in the country.